As a military family you may be accustomed to moving often and not having a permanent address. Just as soon as you feel settled in, you may receive orders to move, so here are some tips to help with buying and selling for military families.
Active service personnel receive Basic Allowance for Housing (BAH) which varies on location, pay grade and number of dependencies, which they can use for renting or buying. Buying a home may offer lower monthly payments and the chance of appreciation, but if you think there is a good chance you will be transferred in the next couple of years, you may want to rent as you would be looking at having to recoup buying and selling costs.
If you do think you are in a stable situation you can be eligible for a VA loan which has benefits like no down payment or PMI payments, as such it maybe a good alternative if you are struggling with making the down payment.
Be sure to check with us on to see what best fits your needs in your unique situation and of course we are thankful to all of the military families for their service and sacrifice.

Nationally, we have been in a seller’s market for quite some time, but there are signs that maybe changing. The seller’s market was fueled by tight inventory and high demand, and was punctuated with bidding wars and cash offers.
A move towards a buyer’s market would mean that houses stay on the market longer and prices stabilize or even drop. Signs of a buyers market include, higher inventory, prices getting lowered, the aforementioned increase in days on market, as well as things like incentives offered by the seller such as help with closing costs or renovations.
The old adage about everything in real estate being local means that some areas maybe in a buyer’s market while others not so much. And while it might not be a buyer’s market, it does seem that we are moving towards a more balanced market.
If you are thinking of buying check with us and we help advise on your area and the current market conditions.

As we continue to see low inventory in the housing market and high rent prices, many home owners are adding ADUs (which stands for Accessory Dwelling Units).
ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for home owners. Home owners typically add ADUs to increase cash flow, as well as looking for their property value to appreciate. Whether ADUs are right for you, depends on a number of factors. ADUs often costs at least $100,000 to build so being in a high rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are.
The old real estate adage about location stays true for ADUs as well. If you are in an area where rents are high or a popular vacation destination, then ADUs can make sense. Again you’ll need to check the local zoning and if you build one you will also need to have updated insurance to cover the ADU. Check with us to learn more and to see what financing terms you qualify for.

If you’re in the market for a new house, you’ve probably heard that you want to get pre… qualified or pre-approved?
What’s the difference anyways?
There’s actually a big difference. Pre-qualified is more of a preliminary step. It gives you a general idea of much home you can afford. We will examine your credit, income, assets, and debts and you’ll have a general idea of the price range you’re looking for. You may also see that you need to increase your savings or lower debts before you buy. While pre-qualifying is an initial step, pre-approval is a deeper dive and being pre-approved carries more weight with sellers.
To get pre-approved we will verify you income, assets, etc. and you will be more official (of course you still have to apply for a mortgage). Being pre-approved is almost a necessity in competitive housing markets, as realtors do not want to waste time and you will have a better chance of having your bid accepted. Now that we know the difference you may wonder what’s the point of getting pre-qualified – why not just get pre-approved? Good question – basically its much faster and it gives you a good starting point to start your home search. Pre-qualify or pre-approve we can help you with both – apply on our website or call us to get started.

As the Federal Reserve has indicated lowering inflation is a top priority and raising short term interest rates as its primary tool to do this, we have seen mortgage markets react with higher rates (mortgage rates are not directly tied to the Fed rate, but they often move in the same direction).
The 30 year rate moved up to 5.89% this week accord B ing to Freddie Mac. While these rates are higher than pandemic lows, the still fall into the historic “normal” range.
While the Fed is taking a strong position against inflation, we are seeing market conditions improve in some areas. As Dawit Kebede, an economist for the Credit Union National Association noted recently, “there are signs that some of the main drivers of inflation are easing, such as lower oil and other commodity prices in July, slower wage growth, and declining supply chain pressures.”
There is also a renewed interest in ARM loans with the 5/1 ARM at an average of 4.52% last week.
Every loan scenario is unique so fill out our loan analyzer on our website and we can see what program is a good fit for you!

If you are shopping for a new home and looking for some good market news, there is some in the increase of housing supply. After dealing with monthly price increases and bidding wars, because demand was far higher than supply, we are looking a somewhat more balanced market (but still a seller’s market in most areas). According to the National Association of Realtors the stockpile of homes in months of supply has dropped from a record low of just 1.6 month in January and has slowly ticked up to 3.3 months in July.
So while it is still a seller’s market conditions are moving towards more balance – if you are looking, go to our website and fill out our pre-qual analysis to see how much you can qualify for and we can analyze what best fits your situation.

In the last few years many people began working remotely and interest in second homes has skyrocketed. Here is a primer for those considering a second home.
The first step is where – do you want a vacation home by the beach or mountains, do you want to be near relatives. Do your research and use a local real estate for help with choosing the right area or neighborhood.
Second is why – do you want a vacation house, a second residence if you spend a lot of time in an area for work or family or do you want an investment property? You can actually combine these and use a second home for vacations and AirBNB it while you’re not there (of course check local rules regarding this).
Third and perhaps most importantly is how – as in how are you going to finance it . You will often need a higher down payment for a second home, as default rates tend to be higher. And with an additional mortgage, you’ll need to make sure your DTI (Debt to Income) ratio is not too high. You’ll also want to make sure a second home doesn’t stretch your budget to much, you should factor in maintenance, property taxes in addition to mortgage payments. If you are planning on renting make sure you factor in the property not being rented immediately and plan to set aside ten percent of rental income towards maintenance.
If you are ready to start looking – apply online and we can let you know how much you can pre-qualify!

There are a lot of benefits to being self-employed – you’re your own boss but when it comes to getting a mortgage secured, its a slightly different process than traditional mortgages. It often comes with additional requirements and red tape.
Here are some tips to help you get organized and approved if you’re self employed. Apply for a mortgage when your income is up (we know this is easier said than done) but lenders will look at your last two years income most closely, and if you’re income fluctuates its best to apply on an up year. This can help you qualify for a greater loan amount and lower interest rate. Get That DTI lower, your debt-to-income ratio is one of the key factors in getting approved. So you’ll want to try to pay down debts (both business and personal) as well as avoid opening new lines of credit a few months before applying. Don’t Mix Business and Personal Keep your business and personal finances separate. Have separate bank and credit card accounts for your business and personal use. This will help lenders easily see the business income and expenses as well as show you are running your business in a professional manner. Give us a call or contact us from our pre-qual app and we can see what product best fits your needs. You may be a candidate for QM (Qualified Mortgage) or non-QM lender, either way we can review and help you get started!

You likely heard the the Federal Reserve Board increased the federal funds rate by three quarters of a percentage point this week, in response to rising inflation (most obviously felt when going to the gas station!). The Fed wants to combat too much liquidity by making borrowing more expensive. As a result mortgage rates have increased from near record lows of the last few years. With higher rates more borrowers are looking into adjustable rate mortgages (ARMs). ARMs were not a favored option with record low rates, but now they are looking more appealing to many borrowers.

As we know the Fed is reacting to a number of factors, as mentioned trying to reign in liquidity, as well as global events that were not anticipated (Russia invading Ukraine the primary one, as well as supply chain issues). The Fed is attempting to cool down the economy now. If you are looking to purchase a new home there a still a number of loan options. Fill out our loan finder or schedule a consult our website to see what options are best for you.